Mastercard Forecasts 4% Rise in U.S. Holiday Retail Spending Amid Inflationary Pressures
Mastercard projects a 3.6% increase in U.S. retail spending this holiday season, with e-commerce leading at 7.9% growth. Consumers are prioritizing value, opting for cheaper products, experiences, and promotions. Gift cards gain traction as budget-conscious shoppers seek financial control.
Inflation looms large, with tariff-driven price hikes expected on clothing, toys, and beauty products. Retailers face a dilemma—absorb costs to stay competitive or pass them to consumers. The forecast period spans November 1 to December 24, capturing the critical holiday shopping window.